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Where? Are you referring to the Standard Deduction? The Standard Deduction is a good thing. Everyone gets a Standard Deduction. It is subtracted from your income before you pay tax. So you get taxed on a lower amount. It means the first 13,850 of income is tax free.
Where are you seeing this amount? If your tax return shows you owe this amount then you need to go back to the income sections you completed and edit those entries. You probably entered an incorrect amount or entered a decimal point incorrectly or entered a comma instead of a decimal point.
It says out of $14,090 I’m only making back $600 dollars and it’s taking out $13,850 from standard deduction. Is the $600 actually what I’m only making back?
Another way to find out what happened is to make a line by line comparison of this return and the prior one(s).
@bcb03db16fa3 wrote:
It says out of $14,090 I’m only making back $600 dollars and it’s taking out $13,850 from standard deduction. Is the $600 actually what I’m only making back?
If your total income is $14,090 then subtracting the Standard Deduction of $13,850 equals $240 which is your taxable income. The tax on your taxable income is $24 if you are filing as Single.
So your tax refund is your tax payments (usually box 2 on the W-2) minus $24.
Is your W2 for 14,090? How much is in box 2 for federal tax? You get to subtract the 13,850 off of the 14,090 leaving you with $240 taxable income. Tax on $240 is $24. If you had more withholding than the tax you get a refund. You probably also got the Earned Income Credit.
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